Indian equities ended the week on a positive note with Sensex and Nifty gained nearly 1%. During the week Sensex reached above 19000 mark for the first time since July 2011 and Nifty made high of 5807 which is the highest in last 17 months, on the back of reform process, coupled with rupee appreciation and huge flow of funds by FIIs. Sensex closed at 18938.46 and NIfty shut shop at 5746.95
As expected earlier Indian Stock Market continued the rally with renewed energy after the reform process started by the government.
HOWEVER HEREON MARKET MAY TRADE IN A RANGE BOUND BETWEEN 5900-5600 TILL THE WINTER SESSION OF THE PARLIAMENT STARTS, WHICH IS SCHEDULED IN 1st WEEK OF NOVEMBER 2012.
Its important to note that if the steps taken by the Indian Cabinet on the reforms are passed by the parliament, a lot of structural changes may happen which may let the Indian Rupee (INR) to appreciate and consequently Indian Stock Market might rally higher above 5900. The rally then continue to new highs and it might take Nifty to 6500+++ levels or even more, but the essential condition for this is same--Parliament should ratify the decisions of cabinet. However it doesn't seems easy and it might lead to some political chaos and instability which markets may not like. Hence its very very crucial to watch closely the events( like IIP data and Infosys result in this week) and development along with the RBI meet on credit policy........ till then keep trading in the range of 5900-5600 with stock specific approach. Stocks like Crompton Greaves, Alembic Pharma, Bata etc..
Technically , In a small period of a month Nifty has given a sharp rise of almost 11.50% (i.e., from 5212 to 5815) and now its expected that the rally will continue till 5870 & 5940. If Nifty is able to sustain above 5940(chances of which are dim on fundamental terms) then this upward rally might continue to 6200 levels, however on the other hand if Nifty breaches to take support at 5620 would indicate the end of the current rally and in that case Nifty may test 5450 also.... Hence all trading position on the Long side should be kept with a strict stop-loss of 5600.
FOR THIS WEEK:
No trading Zone for Nifty is 5700-5820
Go Long in Nifty only above 5820 keeping stop-loss of 5700 for the target of 5870 & 5940.
Go Short in Nifty only below 5700 keeping stop-loss of 5820 for the target of 5620 & 5550.
FOLLOWING STOCKS LOOK GOOD IN DELIVERY TO BUY AT C.M.P AND ADD ON DIPS (HOLDING TIME 45-60 DAYS):
1. LOVABLE LINGERIE(376.05): Buy for the target of 420-440-500++++++
2. FEDERAL BANK(457.10): Buy for the target of 470-490-520++++++
3. CCL PRODUCT(309.95): Buy for the target of 340-380++++++
4. TIMKEN INDIA(210.40): Buy for the target of 240-280-320++++++
5. STERLING HOLIDAY RES(83.35): Buy for the target of 90-96-105-120++++++
6. DELTA CORP(71.00): Buy for the target of 74-78-82-90-105-120++++++
7. CROMPTON GREAVES(139.55): Buy for the target of 145-152-160++++++
8. MANGLORE CHEM (46.05): Buy for the target of 50-56-65++++++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
As expected earlier Indian Stock Market continued the rally with renewed energy after the reform process started by the government.
HOWEVER HEREON MARKET MAY TRADE IN A RANGE BOUND BETWEEN 5900-5600 TILL THE WINTER SESSION OF THE PARLIAMENT STARTS, WHICH IS SCHEDULED IN 1st WEEK OF NOVEMBER 2012.
Its important to note that if the steps taken by the Indian Cabinet on the reforms are passed by the parliament, a lot of structural changes may happen which may let the Indian Rupee (INR) to appreciate and consequently Indian Stock Market might rally higher above 5900. The rally then continue to new highs and it might take Nifty to 6500+++ levels or even more, but the essential condition for this is same--Parliament should ratify the decisions of cabinet. However it doesn't seems easy and it might lead to some political chaos and instability which markets may not like. Hence its very very crucial to watch closely the events( like IIP data and Infosys result in this week) and development along with the RBI meet on credit policy........ till then keep trading in the range of 5900-5600 with stock specific approach. Stocks like Crompton Greaves, Alembic Pharma, Bata etc..
Technically , In a small period of a month Nifty has given a sharp rise of almost 11.50% (i.e., from 5212 to 5815) and now its expected that the rally will continue till 5870 & 5940. If Nifty is able to sustain above 5940(chances of which are dim on fundamental terms) then this upward rally might continue to 6200 levels, however on the other hand if Nifty breaches to take support at 5620 would indicate the end of the current rally and in that case Nifty may test 5450 also.... Hence all trading position on the Long side should be kept with a strict stop-loss of 5600.
FOR THIS WEEK:
No trading Zone for Nifty is 5700-5820
Go Long in Nifty only above 5820 keeping stop-loss of 5700 for the target of 5870 & 5940.
Go Short in Nifty only below 5700 keeping stop-loss of 5820 for the target of 5620 & 5550.
FOLLOWING STOCKS LOOK GOOD IN DELIVERY TO BUY AT C.M.P AND ADD ON DIPS (HOLDING TIME 45-60 DAYS):
1. LOVABLE LINGERIE(376.05): Buy for the target of 420-440-500++++++
2. FEDERAL BANK(457.10): Buy for the target of 470-490-520++++++
3. CCL PRODUCT(309.95): Buy for the target of 340-380++++++
4. TIMKEN INDIA(210.40): Buy for the target of 240-280-320++++++
5. STERLING HOLIDAY RES(83.35): Buy for the target of 90-96-105-120++++++
6. DELTA CORP(71.00): Buy for the target of 74-78-82-90-105-120++++++
7. CROMPTON GREAVES(139.55): Buy for the target of 145-152-160++++++
8. MANGLORE CHEM (46.05): Buy for the target of 50-56-65++++++
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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